Question 4
- State four examples of factory overhead.
- Explain the following terms, giving an example of each:
(i) direct material;
(ii) direct labour;
(iii) direct expenses;
(iv) work-in-progress.
Observation
The performance of the candidates who attempted the questions was average. Majority of those who attempted the question explain the terms but could not give examples of factory overhead.
Examples of factory overhead:
- Factory power/fuel
- Factory rent/rate
- Indirect factory wages
- Depreciation on plant and machinery
- Factory light and heating/cooling
- Factory insurance
- Lubricant
- Maintenance of factory building